KUCHING: Sarawak Planted Forest Sdn Bhd (SPF) has been suffering losses since 2009 to the tune of a whopping RM70.70mil by 2011.
It was found that SPF, a company wholly owned by the state government to supply quality pulp wood to Acacia Cellulose International Sdn Bhd (Acacell) for its pulp factory, had not been generating any revenue since beginning operations in 2008.
The Auditor-General’s Report for 2012 Series 3 revealed that the financial performance of SPF was deemed unsatisfactory.
An audit was carried out from April till June this year and SPF recorded a RM18.72mil loss after tax in 2009, RM32.77mil in 2010 and RM25.36mil in 2011.
The accumulated loss as at year ended 2009 totalled RM26.95mil, RM45.34mil recorded at year ended 2010 and escalated to RM70.70mil at year ended 2011.
The performance of its main activity was also found to be unsatisfactory as the planting, and sales targets were not achieved and there were terms and conditions in the contract agreement that did not wholly favour the company. The report found weakness in supervision and monitoring of the management of supporting programmes.
Weaknesses were also detected in the financial management of the company namely procurement, disbursement and asset management.
The company, it seemed, could also improve on its corporate governance.
SPF was granted a licence from the state government for 60 years commencing Nov 22, 2007 until Nov 21, 2067 to establish, develop and maintain 150,000ha of planted forest zone.
It was also found that a corporate plan was not prepared and that policy and work procedures were incomplete and financial rules and regulations were not totally adhered to.